Parties enter into their contracts with the understanding that each will faithfully discharge their respective undertakings.
It is expected that each party will personally perform under the contract. Typically, contracts provide that the contract may not be assigned by a party without the consent of the other. But, what are the practical and thus legal restraints that these obligations impose on the parties? This article will address issues that may arise from a sales representative point of view, under such restraints, many of which may be avoided by simply anticipating possible future changes in the relationship with the principal.
Something … Read the rest
MANA continuously endeavors to provide educational aids for its members, agents and principals alike. Its most constant reminder is that you should consult your attorney before embarking on your contractual relationships. This is because the law is ever changing and as attorneys we attempt to not only stay abreast of legal developments but when possible to anticipate and avoid problems for our clients. We prefer to practice “preventive” rather than “remedial” law. Despite the 45+ years that I have practiced in the area of law involving sales distribution, I still see things that are overlooked not only by business persons … Read the rest
In previous articles and speeches, I have addressed you on international issues such as the relationship of the sales representative with foreign principals; contractual terms regarding international arbitration; and cultural and legal differences between “agent” and “representative.” Commercial globalization, however, is a metamorphosis, and as it evolves, it causes the business community, and at times our legal and business framework, to undergo its own changes. Unfortunately, the more at ease we are with it, the more lax we become about some of the rules that govern international trade, and we may miss changes that it brings to our domestic rules. … Read the rest